(Solved): Uncollectible Accounts, Using Direct Write-Off Method Illustrate the effects on the accounts and fi ...

Uncollectible Accounts, Using Direct Write-Off Method Illustrate the effects on the accounts and financial statements of the following transactions in the accounts of Valley Care \& Supplies Co,, a local hospital supply company that uses the direct write-off method of accounting for uncollectible recelvables: If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outfiows as negative amounts. March 18. Received \( \$ 19,625 \) on an account. March 18. Wrote off the remaining \( \$ 52,035 \) owed on account as uncollectible. Aug. 29. Reinstated the account that had been written off on March 18. (Do not record the collection of cash yet.) Aug. 29. Received \( \$ 52,035 \) cash in full payment for the reinstated account. July 3. Received \( \$ 20,500 \) on an account. July 3. Wrote off the remaining \( \$ 45,065 \) owed on account as uncollectible. Oct. 8. Reinstated the account that had been written off on July 3. (Do not record the collection of cash yet.) \( \mathrm{OCl} \) Quantum Technologies, a computer consulting firm, has decided to write off the \( \$ 44,925 \) balance of an account owed by a customer. Illustrate the effects on the accounts and financial statements of recording the write-off based on the following assumptions: If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases nd cash outflows as negative amounts. (a) Assuming that the direct write-off method is used: